The concept of dynamic pricing is simple— and easy for businesses to implement. Whether it's a Friday-evening fight, a hotel during the holidays, or a taxi ride in a storm, we have all been burned by higher-than-normal prices due to excess demand. Raising costs when businesses are busiest is the norm(常态) across the travel industry. Perhaps the most well-known example of this is within ride-share companies, which have used surge pricing(峰时定价) for years to charge riders when demand for cars increases rapidly compared to the number of drivers available.
Outside travel, online stores are increasingly using this dynamic pricing, too, says Vomberg. "On Amazon.com alone, millions of price changes occur within a day, corresponding to (对应于) a price change of about every ten minutes for each product." While consumers might not always pick up on these little changes in price, Vomberg says time-based dynamic pricing will likely become a competitive standard at least in online markets. "AI-enabled tools can suggest the best prices via machine learning algorithms(算法). They can also track and learn competitor and customer responses to price changes," he says.
Now, surge pricing is happening in stores including bars and supermarkets as well. "Physical businesses are adopting electronic shelf labels that enable real time price adjustment depending on the time of day, stock levels and whether items are approaching their sell-by date," says Sarwar Khawaja, chairman of the Oxford Education Group. He says this technology is likely to cause prices in bars that use these signs to increase during the rushes of dinner, weekends or holidays, or for supermarkets to adjust prices throughout the day or week, depending on the number of shoppers.
The current economic climate is also driving the need for these pricing technologies. While creating competitive prices is always key to healthy profit margins(利润率), Khawaia says dynamic pricing enables businesses to optimize (使优化) their pricing depending on the financial situations of their customer base. "Businesses can offer discounts during downturns while increasing prices in better off areas," he says.
The changes, however, may not sit well with consumers. "Dynamic and surge pricing will likely expand to more industries and more companies in the long term, but just because a product may be popular does not mean that customers are willing to turn a blind eye to being charged more," says Khawaja. He adds surge pricing can cause customers to lose faith in a company if they believe they are being overcharged. "Perhaps dynamic pricing of a drink in your favourite pub might be a step too far for loyal customers."